Tata Sons reports 62% decline in operational revenue during FY21

August 26, 2021 4:15 AM

The company invested in new businesses to capitalise on future growth opportunities and increase its shareholding in existing businesses, it said.

Tata Sons increased its shareholding in group company Tata Communications to 58.86% through an offer for sale (OFS), while shareholding in AirAsia India was increased to 83.67% from the earlier 51% through additional stake buy.Tata Sons increased its shareholding in group company Tata Communications to 58.86% through an offer for sale (OFS), while shareholding in AirAsia India was increased to 83.67% from the earlier 51% through additional stake buy.

By Rajesh Kurup

Tata Sons, the holding firm of Tata Group reported a 61.8% decline in its operational revenue to Rs 9,460.24 crore during financial year 2021 compared to the year-ago period, according to the company’s annual report. Operational revenue a year ago (FY20) at Rs 24,770.46 crore was much higher, mainly on account of special dividend received from Tata Consultancy Services.

Tata Sons’ operational revenues comprises dividends from group firms. Other income during the year rose substantially to Rs 10,138.11 crore, against Rs 125.93 crore in FY20, due to buyback of shares by TCS. Tata Sons’ consolidated net profit rose 77.68% to Rs 19,397.08 crore, while on a standalone basis, it more than doubled to Rs 6,511.63 crore.

The carrying cost of investments in the company stood at Rs 95,806.33 crore during the year under review, against Rs 84,534.78 crore in the previous year. The market value of Tata Sons’ listed investments rose 84% to Rs 10.30 lakh crore during the year, while the group’s combined market capitalisation rose 91% to Rs 17.80 lakh crore, the annual report stated.

Tata Sons increased its shareholding in group company Tata Communications to 58.86% through an offer for sale (OFS), while shareholding in AirAsia India was increased to 83.67% from the earlier 51% through additional stake buy.

Share in Tata Power was hiked to 45.21% from earlier 35.27% by way of primary issuance of shares, and that in Tata Chemicals was increased to 31.90% from 28.51% through open market buys.

In Tata Motors, the holding firm increased shareholding to 43.73% (from 39.52%) of ordinary shares and 7.57% (from 5.26%) of differential voting right shares through open market purchases.

The company invested in new businesses to capitalise on future growth opportunities and increase its shareholding in existing businesses, it said.

As of end of the reporting year, Tata Sons had 269 subsidiaries and together with subsidiaries had 39 associates and 40 joint ventures.

Tata Sons is also seeking shareholders’ approval to raise up to Rs 40,000 crore through various modes, including non-convertible debentures, according to an earlier AGM notice. The notice, however, did not specify the purposes for which the funds would be used.

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